Doing good doesn't mean you're immune to risk. 

Whether you’re running a crisis hotline, mentoring at-risk youth, offering support groups, or providing faith-based guidance, your organization is in a position of trust. And that trust comes with responsibility.

What many nonprofits don’t realize is that providing any form of advice, support, or coaching – formal or informal – opens the door to legal risk. Even if your services are free. Even if your staff and volunteers are doing their best with the right intentions.

This is where professional liability insurance becomes essential.

Professional liability insurance, sometimes called errors and omissions (E&O) insurance, helps protect your organization when someone claims that your advice, services, or guidance caused harm. It covers legal costs, settlements, and defense fees, even if the claim has no merit.

Unlike general liability insurance, which covers things like physical injury or property damage, professional liability focuses on what you said, advised, or failed to do during the course of your services.

If someone believes they were emotionally, financially, or otherwise harmed by the counsel or support they received, this is the coverage that responds.

Any nonprofit that offers counseling, advocacy, mentorship, or support services, through paid staff or volunteers, should consider professional liability coverage. This includes:

• Mental health nonprofits
• Addiction recovery programs
• Crisis centers or hotlines
• Advocacy and support groups
• Religious ministries offering spiritual counseling
• Youth mentorship organizations
• Career or life coaching programs

Even if your staff or volunteers aren't licensed professionals, that doesn’t eliminate the risk. In fact, informal counseling or peer-led support can increase the chance of misunderstanding or misinterpretation.

We’ve seen situations where a support group leader gave personal advice that a participant later claimed caused emotional distress. Or a volunteer mentor made an offhand comment that a parent took as harmful. In some cases, nonprofits have been sued simply because a participant said they felt pressured to follow advice that didn’t work out.

These cases don’t always make the news. But they do happen, and they can result in legal expenses, damage to your reputation, and disruption of your mission.

Professional liability coverage gives your team the confidence to do their work without fear of one conversation spiraling into a lawsuit.

At the Wallace Agency, we work with nonprofits that provide support and care for vulnerable communities. We understand the heart behind your work, and we understand the real risks that come with it.

If your organization offers counseling or guidance in any form, let’s talk. We’ll walk through what your current policy covers, explain where professional liability fits in, and help you make a decision that protects both your people and your mission.

Want to be sure your organization is protected?

Call today or click here to schedule a simple coverage review. We’ll help you keep your focus on the people you serve, and not on worries about the risks involved.